Fitch affirms Vodafone

Fitch Ratings said it affirmed Vodafone Group plc's long-term issuer default rating and senior unsecured ratings at A-, along with its short-term issuer default rating at F2 following an agreement to sell its shareholding in Societe Francaise du Radiotelephone to Vivendi.

The outlook is stable.

The transaction is consistent with Vodafone's public guidance that they will seek to realize value from non-controlled assets, Fitch said.

Nearly 60% of the net proceeds will be returned to shareholders while about 40% will be used to reduce debt, the agency said.

Fitch said it believes that this split correctly manages the interests of both bondholders and equity and is consistent with Vodafone's A- rating category.

The stable outlook reflects an expectation of a more stable organic revenue trend during the next 18 months, the agency said, and continued efforts to manage costs and working capital.

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